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Before being fully geared up for the second phase restructuring of the financial sector, the financial industry is again rattled by a pledged strike scheduled for July 11.

Financial workers' union protested the government's restructuring plans and threatened to go on a full strike next Monday.

More than 20,000 financial sector unionists gathered at Boramae Park in Seoul on Saturday to accuse the government of attempting to force mergers of banks to make up for the failed restructuring efforts.

``Ten financial institutions have been forced out, and more than 50,000 workers were laid off,'' the union said in a statement.

The unionists insisted that forced merger processes among banks should stop right now and the financial holding company plan being drafted should also be scrapped.

The union said they would strike from Monday unless the government takes measures to withdraw its control of the financial sector and cancel plans to allow holding companies for the forced merger of banks.

If the unionists go on strike, basic operations such as deposits and withdrawals would be paralyzed because they account for about 80 percent of the total workforce at banking institutions.

The Financial Supervisory Service (FSS) on Saturday ordered bank management to prepare for the scheduled strike, but serious confusion is certain once the unionists walk off the job, industry sources said.

FSS Chairman Lee Yong-keun will hold a meeting with bank presidents this morning to iron out feasible measures against the projected walkout.

Workers at banks and other financial institutions have long fretted that mergers among banks would entail further job losses.

Since the banks facing mergers, such Hanvit, Cho Hung and Korean Exchange, are mainly involved in retail banking, slashes of overlapping branches and workforce would be inevitable in the case of a merger, bank experts noted.

Last week, FSS Chairman Lee hinted that there would not be any further layoffs in the merger process.

But looking back at when slashing the workforce used to be a major tool in streamlining organizations, Lee's remark seems to lack confidence, they claimed.

After the nation was placed under the IMF bailout program in late 1997, financial institutions cut their payrolls as part of reform and downsizing.

One labor union leader said, `` The government seems not to take the strike plan seriously. We announced the strike plan a long time ago and negotiations have been halted since June 22.''